PERFORMANCE MANAGEMENT
Performance Management is the process of improving or maintaining employee job performance. It involves the use of performance assessment tools, coaching, and counseling as well as providing continuous feedback and communication between the individual employee and the performance manager. Organizations are interested in performance management systems because individual contribution drives business results that accomplish the goals of the organization. The performance management process provides an opportunity for the employee and the performance manager to discuss development goals and jointly create a plan for achieving those goals. Managers need to help translate the organization’s business goals, objectives, and performance standards to individual employee goals. There should be a direct relationship between the employee’s job description, the job competencies required, and performance plan goals and objectives. Employees should understand what aspects of their job are most important as well as the job criteria. Clear expectations should be set for employee outcomes and employee development plans.
Performance management systems are the subject of lively debate, and top priority for smart forward-thinking organizations. Traditional systems reward individual achievement at the expense of collaboration and teamwork. They goal-set and evaluate annually, fixed thinking that is not agile enough for today’s mindset. They reward past performance while ignoring the future. And they spend too much time on performance appraisal and not enough time on performance improvement.
A well-designed performance management strategy aligns with corporate strategy and supports the culture of the organization. By being smart about managing people, we maximize employee productivity, keep key employees engaged, and build real value now and into the future.